Business Case Studies & Business Publications

Figma's IPO Narrative

Murray, Meghan, Ha...

Case

Figma's IPO Narrative

Murray, Meghan; Handoko, Andy

F-2137 | Published January 23, 2026 | 18 Pages Case

Collection: Darden School of Business

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Learning Objectives

This case is set a week after the initial public offering (IPO) of Figma, Inc. (Figma; NYSE:FIG), in summer 2025; the protagonist is the chief investment officer, Edwin Fernando. The excitement of going public has given way to intense pressure. The stock price surged 250% on its first day to close at nearly $115, but has since corrected dramatically to the high $70s. Internally, murmurs about “billions left on the table” are spreading uneasily among employees. The protagonist is tasked with crafting a message that can reassure employees, manage investor expectations, and support the CEO as he prepares for critical conversations in the days ahead. Fernando considers things like scrutiny and volatility, and the current stock market expectations, driven by highly valued AI companies.

• Analyze the role of a company’s investor relations in managing post-IPO volatility using concrete financial data. • Evaluate valuation perception for high-growth Software-as-a-Service (SaaS) companies and supporting communication strategies. • Consider strategic communication frameworks for addressing public investor concerns and questions posed in the case. • Examine competitive positioning based on the threats described (Adobe, Canva, Miro, AI start-ups) and develop strategic plans to convince investors about the company’s growth trajectory. • Understand key factors and strategies needed to prepare a company for a successful IPO process.